Crisil cuts GDP growth to 5.5%

Rating firm Crisil has cut India's real GDP growth forecast for 2012-13 to 5.5 per cent from its earlier forecast of 6.5 per cent and raised the average WPI inflation forecast to 8 per cent from 7 per cent released earlier.

However, another report by Royal Bank of Scotland Private Banking (RBS) is relatively optimistic over the Indian economy in the second half of calendar year 2012 despite expectations of fall in GDP. RBS is also positive on the performance of Indian equity markets this year.

The downward revision in India's growth forecast factors in the adverse impact of rainfall deficiency (an expected deficiency of 15 per cent for June-September 2012, as per Indian Meteorological Department) and worsening of the euro zone growth outlook (a revision in 2012 growth forecast to -0.6 per cent by Standard & Poor's relative to the earlier forecast of 'zero' per cent), the Crisil report said.

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